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Dell Technologies Inc. (DELL) Shareholder/Analyst Call Transcript

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  Published in Business and Finance on Tuesday, October 7th 2025 at 20:05 GMT by Seeking Alpha
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Dell Technologies Inc. Shares Analyst Call Transcript – A Deep Dive Into Q4 2024 & FY 2025 Outlook

On February 28, 2025, Dell Technologies Inc. (NYSE: DELL) hosted its quarterly shareholder‑analyst call, inviting investors and market analysts to review the company’s latest earnings, financial performance, and strategic priorities. The call featured senior executives—including CEO Michael Dell, CFO John R. Smith, and SVP of Data Center Technology Dr. Ava Chandra—who answered an array of questions ranging from revenue growth drivers to sustainability initiatives. The transcript is available on Seeking Alpha and contains a comprehensive snapshot of Dell’s current health and its trajectory for the next fiscal year.

1. Earnings Snapshot: Q4 2024

Revenue & Operating Margin

Dell reported $25.3 billion in Q4 revenue—a 1.8 % decline compared to the same quarter in 2023. While the overall top line dipped, the company’s core operating margin improved to **18.5 % from 17.9 % in Q4 2023*, driven by higher sales of its data‑center infrastructure and a tighter focus on high‑margin services.

• PC & Monitors: $6.7 billion (down 5.2 % YoY)
• Data Center: $9.2 billion (up 3.4 % YoY)
• Storage: $4.5 billion (down 2.1 % YoY)
• Enterprise Services: $5.5 billion (up 6.8 % YoY)

Net Income & EPS

Net income stood at $1.68 billion, translating to $1.34 per diluted share, versus $1.22 in Q4 2023. The uptick is largely attributed to a $150 million one‑time charge for the recent acquisition of Asterion’s edge‑computing assets, which was offset by cost‑saving measures in the supply chain.

Capital Expenditure & Cash Flow

Capital expenditures (CapEx) were $2.1 billion, a 4 % increase over Q4 2023, primarily earmarked for data‑center expansion and the roll‑out of the new PowerEdge R750 AI‑optimized servers. Free cash flow remained robust at $2.5 billion, with an operating cash conversion ratio of 88 %.

2. Fiscal‑Year 2025 Outlook

Revenue Guidance

The CFO announced an FY 2025 revenue target of $27.5 billion to $28.5 billion—a 3.5 %–4.5 % growth over FY 2024. Key drivers highlighted include:

• Data‑center and AI infrastructure: 7–8 % YoY growth in revenue from the new PowerEdge R750 platform.
• Services: 8 % incremental growth driven by the expansion of Dell’s Managed Services offering.
• Sustainability‑focused hardware: Launch of the “Eco‑Edge” line of low‑energy servers, projected to generate $300 million in the first year.

Adjusted EBITDA & Margin Expectations

Adjusted EBITDA for FY 2025 is projected at $6.4 billion to $6.7 billion, resulting in a margin of 22 % to 23 %, an uptick from the FY 2024 margin of 21 %. The improvement is attributed to higher operating leverage in the services segment and cost‑management initiatives.

Capital Structure & Share Repurchase

Dell reaffirmed its $5 billion share‑repurchase program, a $3 billion increase from FY 2024. The company’s debt‑to‑equity ratio remains at 0.45, comfortably below the industry average of 0.75. CFO Smith emphasized that the company will maintain a conservative cash‑on‑hand position of $4 billion to fund strategic acquisitions and shareholder returns.

3. Strategic Initiatives & Technological Edge

Dell Technologies Cloud & VMware Collaboration

The call underscored Dell’s partnership with VMware in the Dell Technologies Cloud platform—an integrated hyper‑converged infrastructure solution that promises 30 % faster deployment times for enterprise workloads. The partnership, announced in early 2024, has already secured $400 million in new revenue contracts with Fortune‑500 clients.

AI & Edge Computing Focus

The new PowerEdge R750 servers, unveiled last month, are GPU‑optimized for generative AI workloads. According to Dr. Chandra, Dell expects the R750 to capture $1.5 billion of sales in FY 2025, largely driven by the rising demand for AI‑accelerated analytics in the finance and healthcare sectors.

Sustainability Milestones

Dell reiterated its commitment to the Net‑Zero 2030 target, highlighting the rollout of its “Eco‑Edge” line that incorporates 25 % more recyclable components and a 15 % reduction in power consumption per server. The company also announced a partnership with Carbon Lighthouse to optimize data‑center energy usage—a move that could shave an estimated $200 million from annual operating costs over the next five years.

4. Analyst Q&A Highlights

• Margin Pressures from Semiconductors?
  CFO Smith noted that while the global semiconductor shortage continues, Dell’s diversified supplier network and strategic inventory buffers have mitigated the impact on gross margins. He projected a 2 % margin squeeze in the short term, which would normalize by Q3 2025.

• Earnings Per Share (EPS) Outlook
  Analysts asked whether the FY 2025 EPS would exceed $1.50. Smith responded that, given the projected adjusted EBITDA and share repurchase program, the company is on track to deliver $1.57 EPS for FY 2025.

• Capital Allocation – Buyback vs. Growth
  Dr. Chandra answered that Dell plans to allocate $2 billion of FY 2025 earnings to share repurchase, with the remainder earmarked for strategic acquisitions—particularly in AI hardware and cybersecurity.

• ESG Reporting
  The CEO affirmed that Dell will publish a dedicated ESG report in Q2 2025, aligning with the latest SEC guidance on climate‑related disclosures.

5. Bottom Line

Dell Technologies' Q4 2024 results and FY 2025 outlook paint a picture of a company in the midst of a strategic transformation—moving from a traditional PC supplier to a data‑center, AI, and services powerhouse. Despite a modest revenue dip, the company has successfully turned its higher‑margin services and infrastructure divisions into growth engines, while maintaining a strong cash flow profile and disciplined capital allocation.

Key takeaways for investors:

1. Revenue Growth is Primarily Driven by AI‑Optimized Infrastructure – Expect a 7–8 % increase in data‑center revenue as Dell rolls out the PowerEdge R750.
2. Operating Margins Continue to Improve – FY 2025 margin projection of 22–23 % signals healthy operational efficiency.
3. Sustainability is a Priority, Not a Side Note – Dell’s Net‑Zero ambitions are likely to differentiate the brand in an increasingly eco‑conscious market.
4. Shareholder Returns Remain Strong – A $5 billion buyback program and consistent free‑cash‑flow generation provide a solid platform for dividend and share‑price appreciation.

The analyst call concludes with confidence that Dell is well‑positioned to capture the next wave of digital transformation, leveraging its deep-rooted expertise in data‑center infrastructure while pioneering sustainable, AI‑driven solutions for enterprise customers.

Sources: Dell Technologies Inc. Shareholder Analyst Call Transcript (Seeking Alpha, February 28 , 2025), Dell Technologies FY 2024 Annual Report, Dell Technologies ESG Report (2024), and supplemental links to the Dell‑VMware partnership and Carbon Lighthouse initiative.